Latin America has encountered one of its most lackluster growth periods since the turbulent “lost decade” of the 1980s, with a mere 0.9% growth rate recorded between 2015 and 2024. José Manuel Salazar-Xirinachs, the Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), warns that the region risks entering a third decade of stagnation unless significant structural reforms are implemented.
Within this context, Panama emerges as a notable case study. Despite ECLAC revising its growth projections downward to 1.8% for 2024 due to global uncertainties and the slowdown of major economies like the US and China, as well as tight financial conditions, Panama is forecasted to achieve a growth rate of 2.7% for the same year, positioning itself mid-range compared to other regional economies.
While Panama’s growth lags behind leaders like the Dominican Republic and Venezuela, the country surpasses several neighbors and upholds a commendable level of stability in a challenging economic environment.
ECLAC underscores the impact of declining GDP per capita and employment growth over the past decade, with employment expansion averaging 1.3% between 2014 and 2023, presenting a significant regional hurdle. Salazar-Xirinachs highlights the looming threat of losing up to 43 million jobs by 2050 without substantial shifts in production methods and climate change adaptation.
Amidst this crisis, Panama shines as an outlier. Its modest yet resilient growth stands out amidst global adversities. The nation’s strategic positioning and efforts to fortify economic and labor policies position it well to sustain stability and growth potential, even amid regional uncertainties.
While countries like Argentina and Haiti grapple with severe recessions, Panama’s ability to sustain positive growth signals its potential to serve as a linchpin for economic stability in Latin America in the years ahead.